Dual Occupancy – Get A Dream Home & An Investment Property

Building two homes on your land is a smart investment. Particularly when you consider the ever increasing land values across Melbourne, the high cost of stamp duty and the difficult in obtaining property finance. These dual-occupancy building projects make financial, long-term investment strategies viable. They also keep your financial options open by doing the following:

  • Selling one or both homes to make a profit.
  • Leasing both properties.
  • Positively gearing one of the properties.
  • Selling the land with approved plans and permits, at a profit.

Buying a property that has future sub-division potential starts from choosing the right property.  For instance, a new premium townhouse in Bentley, Victoria has similar monetary value to buying an old property on a larger land allotment. The difference being the townhouse will never have the prospect of dual occupancy. The old property, subject to the right conditions, has great prospect for at least two dwellings.

 

–       Purchase a property that allows a second dwelling at the rear, retaining the old property.

–       Full knock down, remove the old house and build new dwellings.

–       Complete the planning phase only, this adds considerable value to the property without any major works to be done, including works to the existing dwelling.

–       Land bank, don’t do nothing with the property for now, the future opportunity is there. The best part of this strategy is you’re leveraging multiple properties for the price of owning one.

 

All strategies create the chance of reducing debit by off selling, owning multiple rental properties or creating on-going residual income.

A dual occupancy is made up of two dwellings (whether attached or unattached) on a single property. A dual occupancy is commonly known as a duplex.

1. I want to build a dual occupancy – where do I start?

Our teams of experts are a one-stop shop for your dream development. We’ll help from selecting the right property, manage the building permit application to project managing construction.

2. What tools are available to help?

Our team consists of buyer’s agents, experienced developers, licensed builders, architects, demolition contractors, mortgage brokers and surveyors whom assist in reducing risk and costly mistakes. We are there to guide you through the process and keep you updated with the progress of your project.

3. When do you subdivide the property?

We must prove to the council that the proposed dwelling works with the planning guide lines meeting council expectorations. After a successful process of obtaining a town planning permit, the subdivision process can begin.

4. Can We Get A Dual Occupancy home anywhere?

The short answer is “No”.  State and local Council regulations, Planning overlays, existing vegetation, slope of the land or title restrictions such as single dwelling covenants can make the development of some land not possible.

5. Is an investor required to use any particular financier, solicitor or property manager?

No. Wise Real Estate Advice will provide referrals to the best professionals to assist clients in achieving the best possible finance approvals and make the most of their investments.

6. What key criteria should I consider?

All you need to do is have your finance approved, sit back and relax, we take care of the whole process from finding the right property, design to completion, on budget, on time.

7. How long is the average development take?

The average development takes approximately two years.

 So Where Do You Start?

The very first phase of a dual-occupancy building project is finding, then buying the right property. In order to buy the right property, it takes experienced professionals who know exactly what to look for to ensure the project is feasible. The main steps of a project include:Dual Occupancy

  • Planning a project that suits your financial
  • Assess the possible risks
  • Buying a the right property
  • Planning / drawings
  • Entering submissions for council approval
  • Preparing the property for dual occupancy
  • Selecting a builder that can deliver a profitable project
  • Financing the project

Following the above process independently can prove to be very difficult, as each critical step can be subject to major time delays, reducing your total profits. There could even be a chance of not delivering a project at all and being a major financial burden.

Wise Real Estate Advice now offers a fully serviced option where we manage each step of the process, from property selection to the final build. Below, our plans:

  1. Property purchase.
  2. Planning / permit.
  3. Building and subdivision.

With over 10 years of experience in dual occupancy projects we can save you time, reduce risk and deliver a stress free experience by managing the process for you.

Case Study: 2 Lot Sub Division, construction of a two bed room unit at the rear.

Positively geared propertySub division Melbourne example

Summary
Sub-dividing land & dual occupancy projects
Service Type
Sub-dividing land & dual occupancy projects
Provider Name

Wise Real Estate Advice Pty.Ltd.,

Leve 2 Riverside Quay, 1 Southbank Boulvard,Southbank,Victoria-3006,
Telephone No.1300 009 473
Area
Melbourne
Description
Positively gear real estate with sub-division & dual occupancy project, Wise Real Estate Advice offers fully managed service from buying, planning / permits & building.

The Directors Exprience With Dual Occupancy

I’ve completed a number of Subdivision project’s in Melbroune over the last ten years. My projects ranged from three new build town houses to squeezing a unit on the rear of an existing property. Below are few tips and where to start.

In the 1970’s my Dad pursued the great Australian dream, purchasing his first house in the outer eastern suburbs of Melbourne for $24,000Interestingly, the same property has a market value of approximately $800,000 in 2018. He told me the $3000 deposit for the property took him 2 years to save and wasn’t terribly difficult as the cost of living was reasonable.

The challenge to owning real estate today is being able to afford it. Purchasing yourself the median house in Melbourne will set you back $880,000 with a stamp duty bill of $47,880. According to NAB’s repayment calculator, monthly repayments of principle and interest will be $4936 per month for the next 30 years.

The median house in Melbourne will set you back $880,000.

The day-to-day high cost of living is also a major issue in Australia. Melbourne is ranked among the most expensive in the world according to the Economist Intelligence Unit’s latest worldwide cost of living survey, which gauges the relative costs of living, across 133 cities. The survey factors in, higher education, health care, utilities, food, rent and taxes. Having enough money left over to save for a house deposit can be challenging and requires dedication.


 Hence, owning multiple properties in 2018 and making money from real estate is a strategy reserved for the wealthy. Or is it? 

In Melbourne, it doesn’t matter which direction you turn, you will find the inner city suburbs constantly changing;Subdividing In Melbourne Positive Gearing the old houses are being replaced with units or multiple townhouse sites. This is happening due to the lack of restrictions on land. When these types of blocks of land where first released the councils or developers didn’t set limitations around cutting a single piece of land into two or three lots. 

 

In these areas, an average block of land is 600 square meters; a large block is considered to be 900 square meters. The minimum land necessary for a 2-bedroom town house, depending on the council, ranges from 190 to 300 square meters. This type of property is reasonability located to the CBD and local amenities. 

 

New developments in the outer fringes of Melbourne have many development rules where a single block of land, regardless of size, can only have one dwelling. Further to the restrictions, a normal sized block of land is considered to be 400 square meters in land size. These types of properties are usually far from amenities and have the future promise of a train station, shop or highway. 

Unlocking future equity. 

Buying a property that has future sub-division potential starts from choosing the right property.  For instance, a new premium townhouse in Bentley, Victoria has similar monetary value to buying an old property on a larger land allotment. The difference being the townhouse will never have the prospect of dual occupancy. The old property, subject to the right conditions, has great prospect for at least two dwellings. 

 

–       Purchase a property that allows a second dwelling at the rear, retaining the old property.

–       Full knock down, remove the old house and build new dwellings.

–       Complete the planning phase only, this adds considerable value to the property without any major works to be done, including works to the existing dwelling.

–       Land bank, don’t do nothing with the property for now, the future opportunity is there. The best part of this strategy is you’re leveraging multiple properties for the price of owning one.

 

All strategies create the chance of reducing debit by off selling, owning multiple rental properties or creating on-going residual income.

How do you purchase a sub-dividable property?  

If you have a chance to speak to any developer they would have great stories of how they started out. There’s always a testimony of how mistakes were made and how they adjusted their future plans based on these mistakes.

Dual occupancy Property
Hiring skilled people from the property selection stage, all the way to project completion. People with development experience will reduce risk & financial exposure. Most importantly, reduce the possibility of you making a past mistake that you may have to share with friends at a barbeque.

 

Buyers must consider things like positioning of easements, existing dwelling, neighboring dwellings, large trees (trees of significance), dwelling shadows. In addition, it is important to understand local council restrictions, zoning, condition of the current property, types of property in the area, positioning to amenities and most importantly the size of land.

 

Initially, this can seem daunting to any real estate buyer. But a team of skilled people can break this down into a step-by-step process that is very manageable.

 


Getting started: Property Selection:

o   Buyers agents that are skilled in this particular type of property purchase. They will make sure your development has great future re-sale potential, pay a fair market value and most importantly, negotiate favorable terms of settlement. Smart developers can have the initial planning process completed at the time of property settlement hence reducing overhead costs.

o   Draftsman or architect that have completed many successful plans in the local area. It is important they manage the council dealing on your behalf.

o   Financial planner or accountant. Draw up a feasibility study that proposes your strategy, holding costs, building costs and get them to check it!

Buying a property with multi dwelling potential creates future opportunity in an expensive real estate market where the possibility of owning a portfolio of multiple properties is difficult.

At Wise Real Estate Advice, we ensure all boxes are ticked and that sincere care is taken when providing a buyer with the wise advice and action required throughout the buying process. To speak to one of our friendly buyer’s agents click here to fill out an enquiry form or just simply call us on 1300 00 WISE.

More questions on Dual Occ. Projects? Check out our FAQ’s page

If you planning to take on a dual occupancy project our buyer’s advocate’s may be just the right people to help clarify your options. For an obligation-free conversation contact Wise Real estate Advice on 1300 009 473 to find out how their services can assist your property needs.

Summary
Sub-dividing land & dual occupancy projects
Service Type
Sub-dividing land & dual occupancy projects
Provider Name
Wise Real Estate Advice Pty.Ltd.,
Leve 2 Riverside Quay, 1 Southbank Boulvard,Southbank,Victoria-3006,
Telephone No.1300 009 473
Area
Melbourne
Description
Positively gear real estate with sub-division & dual occupancy project, Wise Real Estate Advice offers fully managed service from buying, planning / permits & building.